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Understanding the 340B Drug Discount Program

The 340B Drug Discount Program is a federal program in which manufacturers provide Medicaid-like discounts on covered outpatient drugs to qualifying hospitals and clinics. The program is highly complex and non-transparent, and IQVIA can help you understand how it's evolving.

340B patient discount sharing

One of the defining features of the 340B program is there's no requirement for 340B discounts to directly benefit patients: 340B revenue is given to 340B hospitals and clinics which may use it to support activities such as uncompensated care programs. IQVIA is conducting a series of studies of how much 340B revenue is being shared directly with patients, and which kinds of patients are benefiting.

Impact of The Inflation Reduction Act on 340B

The Inflation Reduction Act (IRA) of 2022 introduced provisions requiring the identification and removal of 340B transactions from Medicare to avoid duplicate discounts. CMS has proposed the use of 340B modifiers—flags on claims indicating the use of 340B product—to achieve this. IQVIA has explored the usage of 340B modifiers and how they will impact the industry going forward.
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